Telmex Announces Impending Spin-Off of International Assets

5:30 am on November 16, 2007 | Category: Business, Corporate, Telecom Services

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Mexico’s largest fixed-line telephone operator, Telmex, has announced that it will spin off its fast-expanding international services units, freeing them up from the massive but slow-growing traditional phone company.

Although most of its business takes place in Mexico, Telmex also operates a number of cable television and broadband internet businesses in other Latin American markets, including Brazil, Argentina, Chile, Colombia, Ecuador, and Peru. These international divisions now account for around 30% of the company’s revenue, and will be spun off to form a new corporation called Telmex Internacional.

Most analysts believe that the spin off is a good idea, and that Telmex Internacional will attract more investor interest than its parent company, which has recently come under pressure from growing competition and shrinking profit margins.

Telmex shares were up 1.28 pesos, or 6.9% yesterday, to close at 19.77 pesos on Mexico’s main stock exchange, Bolsa Mexicana de Valores.

Telmex Internacional will trade on stock markets in both Mexico and the United States.

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    1. Interested in buying shares, but cannot find your trading symbol.

      Comment by Armando J Arvizu — June 11, 2008 #

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